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HNI Corp. unveiled plans Monday to acquire Steelcase Inc. in a $2.2 billion cash-and-stock deal, bringing together two of the most recognizable names in office and home furnishings. The move, steered by Davis Polk & Wardwell LLP for HNI and Skadden, Arps, Slate, Meagher & Flom LLP for Steelcase, promises to reshape how workplaces of the future are built and experienced.

Under the agreement, Steelcase shareholders will receive $7.20 in cash and 0.2192 shares of HNI stock per share. Once the dust settles, HNI investors will control about 64% of the combined entity, while Steelcase shareholders will hold roughly 36%.

Complementary Strengths, Shared Vision

HNI President, CEO, and Chairman Jeffrey Lorenger called the merger a “milestone” in the company’s growth trajectory.

“With the Steelcase portfolio of brands, and as in-office work trends accelerate, we will be even better positioned to meet evolving workplace needs, strengthen dealer relationships, and unlock opportunities for growth,” Lorenger said.

Steelcase CEO Sara Armbruster echoed the optimism, calling the tie-up a “bold step” that will “redefine what’s possible in the world of work, workers, and workplaces.”

The companies highlighted their complementary geographic footprints and dealer networks, a pairing expected to expand reach and sharpen competitiveness. The combined firm also intends to push forward with digital transformation, customer-focused buying experiences, and operational efficiencies.

Leadership and Structure of the Combined Company

Lorenger will remain at the helm as president and CEO of the merged entity, headquartered in Muscatine, Iowa. Steelcase will retain its name and its Grand Rapids, Michigan headquarters, preserving the legacy of its brand while integrating into HNI’s portfolio.

The deal will also expand HNI’s board from 10 to 12 directors, adding two independent members from Steelcase’s current board.

Timeline and Advisory Teams

The transaction, which awaits shareholder approval and regulatory clearance, is expected to close by year-end.

Davis Polk’s team advising HNI includes partners James Dougherty, Shanu Bajaj, Adam Kaminsky, Christopher Nairn-Kim, Hillary Coleman, Frank Azzopardi, William Curran, Nathaniel Asker, and Matthew Yeowart.

Skadden’s team for Steelcase is led by M&A partners Brian Duwe, David Clark, and Richard Witzel Jr., joined by executive compensation partner Joseph Penko and tax partner Eric Sensenbrenner.